As it has for most of the year, last week’s stock market story centered on the tech-heavy Nasdaq Composite, which rose on Thursday and Friday on the back of a stellar earnings report from Club holding Nvidia (NVDA ). In addition to beating revenue and profits, the chipmaker also delivered jaw-dropping current-quarter forecasts, while hinting that its data center business will be stronger in the second half of the year. The stock soared about 25% on Thursday. The Nasdaq posted its fifth straight weekly gain, rising 2.5%. The S&P 500 also managed to post a weekly gain, rising 0.3%. Meanwhile, the Dow Jones Industrial Average fell 1% for the week. Looking ahead, investors will keep their eyes on Washington this week as Congress prepares to vote on a bill to raise the U.S. debt ceiling. President Joe Biden and House Speaker Kevin McCarthy reached an “agreement in principle” late Saturday to raise the government’s borrowing limit and avoid a potentially catastrophic default early next month. Elsewhere, corporate earnings season is now largely over. 97% of S&P 500 stocks have now reported quarterly results, with 76% beating revenue and 78% beating EPS estimates. Macroeconomic data will once again be in focus this week, especially on employment. The ADP employment report is scheduled for Wednesday, followed by the government’s monthly non-farm payrolls report. If the news shows that the unemployment rate rose last month, the Federal Reserve may pause interest rate hikes when it meets in early June, which would be good news for stocks. Markets were closed Monday for the Memorial Day holiday. But there are still some key earnings and economic data ahead in the shortened trading week. Salesforce (CRM) was the last club name to report results for the season after the close on Wednesday. Here’s a rundown of the key economic events to watch this week. Markets closed Monday, May 29 for Memorial Day Tuesday, May 30 at 9:00 AM ET: S&P/Case-Shiller Home Price Index (March) 10:00 AM ET: Consumer Confidence ( May) Premarket: The Carlyle Group (CG) Aftermarket: Hewlett Packard (HP), Hewlett Packard Enterprise (HPE) Wednesday, May 31 at 10AM ET: April JOLTS (Job Openings and Labor Turnover Survey) Before: Advance Auto Parts (AAP), Capri Holdings (CPRI) After Hours Bell: Salesforce, Nordstrom (JWN), Chewy (CHWY), CrowdStrike (CRWD), Okta (OKTA) Thursday, June 1 at 8:00AM ET 15: ADP Private Sector May Employment Report 8:30AM ET: Weekly Jobless Claims & Unit Labor Cost & Productivity (Q1) 10:00AM ET: Construction Spending (April) Before market close: Dollar General (DG), Macy’s (M), Hormel (HRL) After market close: Dell (DELL), Broadcom (AVGO), lululemon athletica (LULU), Five Below (FIVE), Zscaler (ZS), MongoDB (MDB) Friday, June 2, 8:30AM ET: Employment Report: Nonfarm Payrolls and Unemployment (May) Recap Last week, Three Club Holdings reported earnings. Nvidia’s blowout quarter and guidance late Wednesday and subsequent stock surge on Thursday got the most attention. Cybersecurity leader Palo Alto Networks (PANW) posted stellar numbers late Tuesday, balancing profits with growth and protecting margins. Costco (COST) posted strong margins late Thursday in its latest quarter. New home sales rose 4.1% in April, helped in part by limited supply, according to a joint report from the U.S. Department of Housing and Urban Development and the Census Bureau. The U.S. government raised first-quarter gross domestic product to 1.3% from an initial estimate of 1.1%. Consumer spending and durable goods orders came in stronger than expected on Friday. The Fed’s favorite inflation measure — the core personal consumption expenditures price index — was also on fire, pushing the market odds of another rate hike in June to around 64%, according to the CME FedWatch tool. The central bank will hold its next policy meeting on June 13-14. By Friday’s close, the U.S. dollar index rose to a level just above 104. Gold trades at about $1,943 an ounce. West Texas Intermediate crude is hovering in the low $70s a barrel. The 10-year Treasury yield rose to around 3.8%. Club Trading We took profits on Eli Lilly (LLY ) last Monday as the stock hit another all-time high. This is a small 50 strand trim. We still like Lilly and hold 150 shares, representing a 2.38% weighting in the club’s portfolio. On Thursday, we bought beer, wine, and spirits giant Constellation Brands (STZ ), which has fallen recently. STZ increased its stake by 20 shares on the belief that some changing beer industry trends will benefit STZ. We own 430 shares, representing a 3.74% weighting in the portfolio. (For a full list of Jim Cramer Charitable Trust stocks, see here.) As a subscriber to Jim Cramer’s CNBC Investment Club, you’ll receive trade alerts before Jim makes them. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after sending out a trade alert before executing the trade. The investment club information above is subject to our terms and conditions and privacy policy and our disclaimer. No fiduciary duty or obligation exists or arises as a result of any information you receive in connection with Investment Club. No specific results or profits guaranteed.
House Speaker Kevin McCarthy speaks to reporters on the debt ceiling issue following the departure of White House negotiators at the U.S. Capitol in Washington, U.S., May 23, 2023.
Kevin Lamarque | Reuters
As with most of the year, last week’s stock market story revolved around technology stocks Nasdaq Composite Indexrose Thursday and Friday on the back of Club holdings NvidiaThe (NVDA) excellent earnings report.